TOKYO, Aug 10 (Reuters) – Key Tokyo rubber futures rose more than 2 percent on Wednesday, as sentiment improved with a recovery in oil prices and stock markets, but worries about the global economic outlook kept investors cautious about chasing up prices.

FUNDAMENTALS
* The benchmark rubber contract on the Tokyo Commodity Exchange <0#JRU:> for January delivery jumped as much as 8.6 yen or 2.5 percent to 364.1 yen per kg in early trade.
* The previous day, it had fallen as much as 6 percent to an intraday low of 348.0 yen per kg, the lowest since June 29 on Tuesday.
* The most active Shanghai rubber contract for January fell 9.5 yuan to settle at 32,785 yuan ($5,094) per tonne on Tuesday.
* Brent crude rose more than $2 in early Asian trade on Wednesday, extending the previous session’s gains, as the U.S. Federal Reserve promised to extend near-zero interest rates for two more years. [O/R]
* The U.S. dollar stayed under pressure in Asia on Wednesday, having slumped after the Federal Reserve’s extraordinary vow to keep rates near zero for two years, reaffirming the greenback’s status as a funding currency of choice for carry trades. [USD/]
* For top stories on the rubber market and other news click [TOP/CE], [TOP/MACRO] [RUB/T] or [COM/WRAP]

MARKET NEWS
* Global oil demand will grow less than previously projected this year, according to forecasts on Tuesday from the U.S. and OPEC, as a worsening economic outlook will curb consumption in developed countries. [ID:nN1E7781JD]
* The Nikkei share average <.N225> rose more than 2 percent Wednesday after the Federal Reserve’s pledge to keep rates near zero for another two years sparked a rally in U.S. stocks. [.T]
* U.S. stocks rallied on Tuesday in a volatile session as investors struggled to decipher the Fed’s signals on the economy after a dizzying two-week slide. [.N]

Source: Reuters

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